Microchip Technology (NASDAQ: MCHP) raised its December 2025 quarter guidance, expecting consolidated net sales to be about $1.149 billion, representing roughly 12% year-over-year growth and ~1% sequential growth versus prior guidance that anticipated a decline. The company now expects GAAP EPS ≈ $0.02 and non-GAAP EPS ≈ $0.40, at the high end of prior ranges. Prior sales guidance was $1.109B–$1.149B; prior GAAP EPS range was $(0.02)–$0.02 and non-GAAP EPS was $0.34–$0.40. Management cited stronger bookings, improved backlog, and execution of a nine-point recovery plan. There will be no conference call; Microchip will webcast a UBS Global Technology and AI Conference presentation on Dec 3, 2025.
Non-GAAP EPS about $0.40 (at high end of guidance)
Bookings and backlog strengthened through November
Negative
Forward-looking guidance remains subject to broad economic and geopolitical risks
News Market Reaction
+6.14%1.7x vol
114 alerts
+6.14%News Effect
+13.2%Peak in 25 hr 7 min
+$2.00BValuation Impact
$34.56BMarket Cap
1.7xRel. Volume
On the day this news was published, MCHP gained 6.14%, reflecting a notable positive market reaction.
Argus tracked a peak move of +13.2% during that session.
Our momentum scanner triggered 114 alerts that day, indicating very high trading interest and price volatility.
This price movement added approximately $2.00B to the company's valuation, bringing the market cap to $34.56B at that time.
Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Wells Fargo TMT Summit presentation details for senior executives.
Pattern Detected
Product and guidance-related news have recently coincided with notably positive price reactions, while routine conference appearances have seen modest, mixed moves.
Recent Company History
Over the last few weeks, Microchip has focused on investor outreach and operational execution. Conference participation at Wells Fargo, UBS, and Barclays around Nov–Dec 2025 led to modest share moves. In contrast, the December guidance raise toward $1.149B revenue with GAAP EPS ≈ $0.02 and non-GAAP EPS ≈ $0.40 and the low-power monitor product launch both coincided with stronger positive reactions, underscoring the market’s focus on concrete financial and product progress.
Market Pulse Summary
The stock moved +6.1% in the session following this news. A strong positive reaction aligns with Mic...
Analysis
The stock moved +6.1% in the session following this news. A strong positive reaction aligns with Microchip’s raised guidance, which targeted consolidated net sales of about $1.149 billion and non-GAAP EPS ≈ $0.40 at the high end of prior ranges. Recent history showed solid moves on concrete product and financial updates, while conference news had smaller impact. Investors would need to weigh sustainability of 12% year-over-year growth against macro risks and execution on the recovery plan.
Key Terms
gaap, non-gaap, forward-looking statements, safe harbor, +3 more
7 terms
gaapfinancial
"guidance for net sales and GAAP and non-GAAP earnings per share"
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
non-gaapfinancial
"guidance for net sales and GAAP and non-GAAP earnings per share"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
forward-looking statementsregulatory
"are forward-looking statements made pursuant to the safe harbor provisions"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
safe harborregulatory
"pursuant to the safe harbor provisions of the Private Securities Litigation"
Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.
form 10-kregulatory
"refer to Microchip's filings on Forms 10-K and 10-Q"
A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.
form 10-qregulatory
"refer to Microchip's filings on Forms 10-K and 10-Q"
A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.
chips actregulatory
"the impact that the CHIPS Act will have on increasing manufacturing capacity"
A Chips Act is government legislation or a public funding program aimed at boosting domestic semiconductor manufacturing, research and supply-chain resilience by offering grants, tax incentives, or rules to support chipmakers and equipment suppliers. For investors it matters because such programs can shift where chips are built, lower costs or risks for manufacturers, and create opportunities for firms that make chips, tools, or materials—much like a large, targeted construction subsidy that reshapes an industry’s landscape.
AI-generated analysis. Not financial advice.
CHANDLER, Ariz., Dec. 02, 2025 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) - Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today updated the range of its prior guidance for net sales and GAAP and non-GAAP earnings per share for its third quarter of fiscal 2026 ending December 31, 2025. Microchip now expects its net sales and earnings per diluted share to be at the high end of its previously provided guidance, representing sequential growth of roughly 1% that exceeds the midpoint of our prior guidance which anticipated a sequential decline in net sales. Our revised December 2025 quarter revenue guidance would represent 12% year-over-year growth. Microchip previously provided guidance on November 6, 2025 of consolidated net sales to be between $1.109 billion and $1.149 billion. GAAP earnings per share is now expected to be about $0.02, and non-GAAP earnings per share is now expected to be about $0.40. The original guidance for the GAAP loss/earnings per share was between $(0.02) and $0.02, and the original guidance for non-GAAP earnings per share was between $0.34 and $0.40.
Steve Sanghi, Microchip's CEO and President, commented, "With two months of the quarter behind us, our business is performing better than we expected at the time of our November 6, 2025 earnings conference call. Our bookings activity has remained strong through November with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter. We are executing on our nine-point recovery plan as well as our strategic initiatives, reducing inventory levels, improving non-GAAP gross margins, operating margins and earnings per share, and making progress towards our long-term business model."
There will be no conference call associated with this press release. Microchip is attending the UBS Global Technology and AI Conference on Wednesday December 3, 2025. A live webcast and replay from the UBS Conference will be available at www.ir.microchip.com
Cautionary Statement:
The statements in this release relating to expecting net sales and earnings per diluted share to be at the high end of its previously provided guidance, with consolidated net sales for the December quarter to be about $1.149 billion, GAAP earnings per share to be about $0.02, non GAAP earnings per share to be about $0.40, that our business is performing better than we expected, that our bookings activity has remained strong through November with backlog filling in better than expected in the current quarter and growing nicely into the March 2026 quarter, that we are executing on our nine-point recovery plan as well as our strategic initiatives, reducing inventory levels, improving non-GAAP gross margins, operating margins and earnings per share and making progress towards our long-term business model are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued uncertainty, fluctuations or weakness in the U.S. and world economies (including China and Europe) due to changes in the scope and level of tariffs, interest rates or high inflation, actions taken or which may be taken by the Trump administration or the U.S. Congress (including budget and tax legislation), monetary policy, political, geopolitical, trade or other issues in the U.S. or internationally (including the military conflicts in Ukraine-Russia and the Middle East), further changes in demand or market acceptance of our products and the products of our customers and our ability to respond to any increases or decreases in market demand or customer requests to reschedule or cancel orders; the mix of inventory we hold, our ability to satisfy any short-term orders from our inventory and our ability to effectively manage our inventory levels; foreign currency effects on our business; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels to meet any increases or decreases in market demand or any customer requests to reschedule or cancel orders; the impact of inflation on our business; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; our ability to realize the expected benefits of our long-term supply assurance program; changes or fluctuations in customer order patterns and seasonality; our ability to effectively manage our supply of wafers from third party wafer foundries to meet any increases or decreases in our needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any future increases in market demand; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of any future significant acquisitions or strategic transactions we may make; the costs and outcome of any current or future litigation or other matters involving our acquisitions (including the acquired business, intellectual property, customers, or other issues); the costs and outcome of any current or future tax audit or investigation regarding our business or our acquired businesses; the impact that the CHIPS Act will have on increasing manufacturing capacity in our industry by providing incentives for us, our competitors and foundries to build new wafer manufacturing facilities or expand existing facilities; the amount and timing of any incentives we may receive under the CHIPS Act, the impact of current and future changes in U.S. corporate tax laws (including the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017); fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.
For a detailed discussion of these and other risk factors, please refer to Microchip's filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip's website (www.microchip.com) or the SEC's website (www.sec.gov) or from commercial document retrieval services.
Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this December 2, 2025 press release, or to reflect the occurrence of unanticipated events.
About Microchip:
Microchip Technology Inc. is a broadline supplier of semiconductors committed to making innovative design easier through total system solutions that address critical challenges at the intersection of emerging technologies and durable end markets. Its easy-to-use development tools and comprehensive product portfolio support customers throughout the design process, from concept to completion. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support and delivers solutions across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. For more information, visit the Microchip website at www.microchip.com.
Note: The Microchip name and logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.
INVESTOR RELATIONS CONTACT: Sajid Daudi -- Head of Investor Relations..... (480) 792-7385
FAQ
What guidance did Microchip (MCHP) give for the December 2025 quarter?
Microchip expects consolidated net sales of about $1.149 billion, GAAP EPS ≈ $0.02, and non-GAAP EPS ≈ $0.40 for the quarter ending Dec 31, 2025.
How much year-over-year growth did Microchip (MCHP) forecast for Q3 fiscal 2026?
The company indicated the December quarter revenue guidance represents about 12% year-over-year growth.
Did Microchip (MCHP) change its prior sales guidance issued Nov 6, 2025?
Yes; prior range was $1.109B–$1.149B, and the company now expects to be at the high end, about $1.149B.
Will Microchip (MCHP) hold an earnings call to discuss the guidance update on Dec 2, 2025?
No; the company said there will be no conference call associated with the Dec 2, 2025 press release.
What operational factors did Microchip (MCHP) cite for the guidance raise on Dec 2, 2025?
Management cited stronger bookings, backlog filling better than expected, and execution of a nine-point recovery plan.
How can investors watch Microchip’s presentation at the UBS conference on Dec 3, 2025?
A live webcast and replay will be available at Microchip’s investor relations website.
